Asked by Patrick Barnett on Jun 20, 2024
Verified
Betterments are a type of capital expenditure.
Betterments
Improvements made to an asset that increase its value or extend its useful life, typically treated as capital expenditures.
Capital Expenditure
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve long-term business operations.
- Differentiate between capital expenditures and revenue expenditures.
Verified Answer
SM
Shaun MichaelJun 23, 2024
Final Answer :
True
Explanation :
Betterments are improvements or upgrades made to an existing asset, which fall under the capital expenditure category.
Learning Objectives
- Differentiate between capital expenditures and revenue expenditures.
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